Buyers remorse....?

PrimaDonna

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We got a call yesterday from a carpet retailer for an emergency job. They had a carpet being installed today, that the guys in the got several grease marks on when it was in the warehouse.

We've done work for this retailer here and there, but they don't refer us consistently because they have another guy they use. It is a place where we would love to be the primary cleaner they use and refer, but have been respectful of the relationship they have with the another cleaner. This is one those wait in the wings opportunities, and the second one that has happened for us with a local retailer in the past month. I didn't know why he called us for this, but was happy to have the opportunity, and knew it was one of those things we had to make happen if we wanted to further our relationship with them.

I quoted him our minimum charge over the phone ($175). He said whatever it is, fine, we need it taken care of. Sent the guys out at the end of the day and they took care of it.

While they were there, the Operations Manager made a big to do about how thankful he was for us coming out on such short notice. He told John he called is regular guy, who never called him back. However, he did show up yesterday afternoon before we got there and said he was there to fix the problem. They sent him packing and told him that someone else was scheduled to to it.

He then told John he was going to tell all the sales reps to refer us from now on. Just the "in" we've been waiting for.

Then we get this email this morning....

John, Meg,
Thank you for cleaning the rug last night. It was done promptly and efficiently.
Helped us out a lot.
I wanted to take this opportunity to honestly convey I was a little taken aback on the amount of your minimum. The present cleaner that I use for store cleaning,
Does an acceptable, similar size job for us here anywhere from $35 - $85.
I do realize after John explained to me that you added a step back into to help protect the fibers, understood.
I would ask that maybe we could revisit the charges for us moving forward .
Thank you.
I have approved the charges from last night; check being issued.


Working on the response. Want to be respectful of his position, but gently remind him what he said and how the customer service was lacking with the current cleaner (you get what you pay for....with out saying that)

We have to determine if his pain is greater in the wallet....or the customer service/responsiveness of the other provider.

I do plan to share our referral program and how we offer 10% back to new clients. They could use that "credit" toward our services in these situations or to clean their showroom. I'd even be happy to work something else out if we truly do start to get a lot of business from them and we see referrals coming through. However, I'm not quick to jump in to changing our prices if it's not going to result in other business for us.

How would you respond to this?
 

SamIam

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Honestly doesn't really sound like something your looking for! If your firm on your minimum and don't need quick filler work.

Thank him, or drop your minimum to $125 for him only.

If the referral to new customers is worth it that may be a consideration.
 

Jim Pemberton

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I think that there are a couple of things in play here, and how you approach it will have a lot to do with where you see the value of this relationship.

1. Your emergency service was needed, and worth most anything short of carpet replacement to him. He was in no position to negotiate because of what happened, and the inability of his usual resource to fulfill his needs. Once the smoke cleared, you could say he got buyers remorse, because of course the perceived value of the service diminishes greatly after the emergency has passed.

But a point worth noting is that he did not ask you to lower your bill, and he did acknowledge that you provided an extra step. If he said "I'm only going to pay 85.00 for your emergency service", that would be closer to true "buyers remorse", and it would also be a sign that he's not trustworthy and therefore not a good potential business partner.

2. What he said was could you "revisit the charges for us moving forward". That means that he understood why he paid what he did, and is even prepared to leave the established relationship if you could work for the price of the other cleaner.

This is another issue altogether.

A few questions:

1. What does the other cleaner do for that price? If protector isn't built into the price, and if emergency cleaning services on new carpet don't require protector to be reapplied (in most cases they won't) there might be room to talk about what he wants and needs.

2. Does he need a 10% commission? To many retailers, 20.00-50.00 commission checks (assuming jobs are 200-300.00), are a book keeping nightmare that is not as valuable as prompt service and the retention of happy customers. If you don't have to pay a commission, your pricing structure can also change.

But the bottom line, in my opinion, is this:

If your base price for cleaning is one that you and John have established as fair to all comers, whether Burdick's customers or the customers of the retailer, then it wouldn't seem fair to me for his customers to pay less than do yours.

But that's not necessarily a business decision; just my own, possibly skewed, sense of fair play.

Sorry for the long response....too much coffee this morning :)
 

Willy P

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Sorta like garbage pick up.........:biggrin: (this post was meant in humour. No garbage pick up were actually used or injured in this response. This response may cause dizziness, weight loss, dry mouth, excessive flatulence, diarrhea, nightmares,or uncontrollable shaking. Contact your doctor if these or any other symptoms last more than 4 hours)
 
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PrimaDonna

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. Does he need a 10% commission? To many retailers, 20.00-50.00 commission checks (assuming jobs are 200-300.00), are a book keeping nightmare that is not as valuable as prompt service and the retention of happy customers. If you don't have to pay a commission, your pricing structure can also change.

We don't send out checks. We send out a certificate telling our clients how much the receive in "Burdick's Bucks". If they want a check, they have to mail the certificate back to us. Otherwise they hold on to it and it's applied to a future cleaning.

With larger volume referral sources such as a retailer, we keep a spreadsheet of referrals have sent checks monthly or quarterly. Or they bank the credits and use toward services for these emergency situations or toward us maintaining their showroom or office carpets.

If your base price for cleaning is one that you and John have established as fair to all comers, whether Burdick's customers or the customers of the retailer, then it wouldn't seem fair to me for his customers to pay less than do yours.

Exactly! Here is how I addresed that in my email response back to him (this isn't the whole email):

Thank you for the feedback. We would like to continue to partner with you in the future. I know that we discussed our minimum charge when you called to see if we could get you in yesterday. I can't speak for the charges the other cleaner you have been using. However our minimum charge across the board for service for any client is $175. It's what we need to charge to cover our overhead costs and with running a two man crew. We also pride ourselves on doing more than just an "acceptable" job. The quality, value, and level of customer service is reflected in our pricing.


I put "acceptable" in quotes as it was how he described the cleaner they have been using.


I'll post my full reply to him later. I hope to hear back from him so I can include his response and show the whole exchange.
 

Willy P

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Sorry - I forgot the disclaimer, but I don't see any difference. Business is business. We're all in it to profit.
 
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PrimaDonna

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but I don't see any difference
Business is business. We're all in it to profit.

True..business is business....

And some clients are only in it for the best price. Every business has to figure out what kind of client they want. There is a niche for all of them.

Certain things I will choose price over quality or service. But it depends on what it is and the circumstances at the time. Two gas stations at the same intersection and one is 30% cheaper, I'm going for that one. Trash pick up and one is 30% cheaper, I went for that one. Same pair of shoes at two different stores, I one is on sale or I have a coupon, I'm going for the one that costs less.

I don't have time to go shopping and need something that Amazon carries. More expensive online but I can get it tomorrow with Amazon Prime and not have to go out....I'm gladly paying more. Really depends on this situation and what the priorities are at the time.

Some people want a cheap carpet clean and don't see value in paying more (and getting more). I don't begrudge them and I'm thankful there is someone out there who can serve them and fill their needs if we aren't the right fit.
 
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PrimaDonna

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Agreed, Lee. It really depends on the situation and product or service.

And best value may not be best price.

Sometimes your lucky to get both.
 

Jim Pemberton

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I've been giving a lot of thought to your situation Meg.

I know we're waiting for his answer, but these are some of my reflections and questions regarding your (potential) relationship with this person, how its worked with others you know, and how its worked with other cleaners:

1. How many other such relationships do you have with similar retailers? What is your pricing agreement with those individuals?

2. Does the retailer continue to receive commissions on the jobs done for a customer, or is that only for the first time you do it? (By the way, the method you use to manage the commissions does make sense, and eliminates the book keeping nightmare...well done).

3. What percentage of your business volume comes from retailer referral using this model? (If you don't mind sharing that)

The reason I ask these things is because I'm trying to determine just how valuable a relationship with this individual would truly be for you.

Thanks Meg; this is a good story line for everyone to follow; "retailer referral" is one of those "Holy Grail" things that many newer cleaners strive for, but that isn't always what it seems to be depending on how its handled.
 
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I will never enter into another relationship with any flooring retailer or realtor. Complete waste of my time. They prey on the desperate carpet cleaner. Nothing to do with quality or service. I treat them as any other customer.
 

ruff

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Unless they're deliberately uneducated, the retailer knows very well that charging $35.00 - $80.00 is not a profit maker, as a matter of fact, with that quick a response it may be a loss (as you could have done a more profitable job). If they don't understand it- educate them.

Good business people understand that for a relationship to be of value, it has to benefit both parties. And an honest conversation rarely hurts anybody. And a talk is a lot better than an email. It will only be worth it for you, if they send new and good clients.

Therefore the only way I would discount my minimum is by tying your discounted service to, not legally but by having an understanding, their referring new clients to you. Keep track, as I am sure you do (some retailer's words are cheap), of their referrals and see if the discount is justified by the new clients they send.
 

cobra

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Ok heres my take on this. After dealing with property managers all day I guess I'm kinda Cynical.


John, Meg,
Thank you for cleaning the rug last night. It was done promptly and efficiently.

Thanks you bailed my azz out. my guy left me high and dry
Helped us out a lot.
I wanted to take this opportunity to honestly convey I was a little taken aback on the amount of your minimum. The present cleaner that I use for store cleaning,

I didn't want to say this when you had my back against the wall but your too expensive
Does an acceptable, similar size job for us here anywhere from $35 - $85.
All I need is for the customer to stop whining, I don't care that you went above and beyond I want "acceptable"

I do realize after John explained to me that you added a step back into to help protect the fibers, understood.
I get it you sprayed something on the carpet and charged me more
I would ask that maybe we could revisit the charges for us moving forward .
Thank you.

If I call you again I expect it to be cheaper, or I wont be calling you.
I have approved the charges from last night; check being issued.
I'm goint to pay you THIS TIME!

this is what they really mean . However, I have built a business on turning this around on them and getting the business anyway. I guess it just depends on how much business you get from it and your business model and plan?!.
 

PrimaDonna

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Why would you protect brand new carpet?

Cause cleaning it removed the protection. It wasn't smart strand.

FYI we usually have a min. charge to clean ($175) And protection is additional. We cleaned and protected for them at the min charge. They did get a deal.

Essentially it was a spot clean since the whole rug wasn't effected so we did both for the min charge.
 

GeneMiller

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We got a call yesterday from a carpet retailer for an emergency job. They had a carpet being installed today, that the guys in the got several grease marks on when it was in the warehouse.

We've done work for this retailer here and there, but they don't refer us consistently because they have another guy they use. It is a place where we would love to be the primary cleaner they use and refer, but have been respectful of the relationship they have with the another cleaner. This is one those wait in the wings opportunities, and the second one that has happened for us with a local retailer in the past month. I didn't know why he called us for this, but was happy to have the opportunity, and knew it was one of those things we had to make happen if we wanted to further our relationship with them.

I quoted him our minimum charge over the phone ($175). He said whatever it is, fine, we need it taken care of. Sent the guys out at the end of the day and they took care of it.

While they were there, the Operations Manager made a big to do about how thankful he was for us coming out on such short notice. He told John he called is regular guy, who never called him back. However, he did show up yesterday afternoon before we got there and said he was there to fix the problem. They sent him packing and told him that someone else was scheduled to to it.

He then told John he was going to tell all the sales reps to refer us from now on. Just the "in" we've been waiting for.

Then we get this email this morning....

John, Meg,
Thank you for cleaning the rug last night. It was done promptly and efficiently.
Helped us out a lot.
I wanted to take this opportunity to honestly convey I was a little taken aback on the amount of your minimum. The present cleaner that I use for store cleaning,
Does an acceptable, similar size job for us here anywhere from $35 - $85.
I do realize after John explained to me that you added a step back into to help protect the fibers, understood.
I would ask that maybe we could revisit the charges for us moving forward .
Thank you.
I have approved the charges from last night; check being issued.


Working on the response. Want to be respectful of his position, but gently remind him what he said and how the customer service was lacking with the current cleaner (you get what you pay for....with out saying that)

We have to determine if his pain is greater in the wallet....or the customer service/responsiveness of the other provider.

I do plan to share our referral program and how we offer 10% back to new clients. They could use that "credit" toward our services in these situations or to clean their showroom. I'd even be happy to work something else out if we truly do start to get a lot of business from them and we see referrals coming through. However, I'm not quick to jump in to changing our prices if it's not going to result in other business for us.

How would you respond to this?

I'm not gonna read anyone else response and just say lower your price and here's why. I used to work for the largest builder here. I quit after 4 years because I was overwhelmed with work. I was basically getting paid to go into a new customers house and meet them. I showed them my stuff and ended up with most of them as customers. The great thing for me was it concentrated my business which in the long run saved me money. Look at it as advertising you get paid for.
 

Able 1

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The cleaning removed it? What was this carpet made of? What are you using for a prespray oven hood cleaner? Good sales pitch though!

Really it's just all about service, you can charge whatever you want to!
 
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Jim Pemberton

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I've done some tests on protector durability, and high ( oven cleaner would qualify) ph can damage protector, as can dry spotters.

Since it was grease, I could see where needing to use solvent spotters might cause the need for reapplication.

As Meg said, overall they were doing all they could to make their minimum charge have as much value as possible in it.
 

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